Has your work commute become longer than ever before? Is using transit impractical[JG1] [JG2] because the stations are far away from your home? Help from the federal government may be on the way.
A bill named the “Build More Housing Near Transit” act was introduced by Rep. Scott Peters (D-Calif.) this summer but quickly gained bipartisan support in both chambers of Congress. Representative Blake Moore (R-Utah) and Senators Brian Schatz (D-Hawaii) and Jim Banks (R-Ind.) have already shown their approval. The bill would prioritize applications for competitively awarded federal transit funding if they are accompanied by pro-housing plans along transit corridors.
“The cost of housing remains the greatest barrier to prosperity in California, forcing people to move farther and farther from where they work, which means longer commutes and more air pollution,” said Representative Peters. “Our bill will get more cars off the road by maximizing federal investments in public transportation and will increase affordable housing options for families across the country.”
“The clearest way out of our national housing shortage is by building more housing,” said Senator Schatz in the same report. “Our bipartisan bill incentivizes cities and towns to build housing when they expand or redevelop their public transit systems. This will help put more families in homes, grow local economies, and cut carbon pollution. It’s a win for everyone.”
Why the Commute Crisis Intensified After the Pandemic
Building housing near major transit stations has been an ongoing issue for years. However, the spotlight on the problem grew much brighter post-pandemic.
Covid-19 saw countless people choose to move away from city centers in search of more affordable housing (thanks to the ability to work from home). Now, as more return-to-office mandates are put in place, commutes are longer, traffic has increased, and carbon emissions are rising.
Building new homes closer to transit hubs encourages more people to stay off the roads while also improving air quality.
“By speeding permitting for new transit-oriented development (TOD), the federal government can accelerate the construction of housing and mixed-use projects near transit hubs, making it easier for developers (already burdened with soaring building costs, high financing rates and market uncertainties) to quickly bring units to market and at a lower cost,” said John Boyd Jr., principal at The Boyd Company. Boyd’s firm helps real estate developers plan and locate projects throughout North America.
Economic Benefits of Building More Affordable Housing Near Transit
According to the National Low Income Housing Coalition, the shortage of affordable housing costs the American economy about $2 trillion a year in lower wages and productivity. Pivoting to the concept of building more homes near transit hubs should provide an economic boost.
“The Build More Housing Near Transit Act would expand economic opportunity,” said Satoko Turnbull, brand manager at Shawood.
“Federal transit dollars will inevitably be tied to housing development plans, creating a preference for new development and expansion for transit investment, and adding to local coffers while providing families with affordable access to transportation.
“It reduces restrictive supply as it incentivizes municipalities to build along rail and bus corridors for easier zoning applications. Meanwhile, the dual efforts of transit and housing development investment offer constant construction, engineering, and community-based employment.”
What New Home Buyers Should Do Now
• Watch the progress of the Build More Housing Near Transit Act, since its passage could increase the number of homes built near transit corridors.
• Pay attention to municipal plans related to transit expansion or redevelopment, because cities that align with federal incentives may see new housing supply faster.
• Look for early signs of transit-oriented development proposals in your region, which may indicate future opportunities for more affordable or better-located homes.
• Monitor developers that specialize in building near transit hubs, since permitting and construction could accelerate if the bill moves forward.
• Consider how proximity to transit may affect long-term affordability, commute time, and access to services when evaluating where to buy.
• Track changes in zoning or local housing policies along rail and bus corridors, because municipalities may adjust rules to qualify for federal transit funds.
The Bottom Line
For new home buyers, the Build More Housing Near Transit Act signals a potential shift toward more attainable and better-located housing. If the bill passes, cities that commit to adding homes near transit hubs will move to the front of the line for federal transit funding. That could speed up construction, lower some development costs, and increase the supply of homes in areas with shorter commutes and easier access to transportation. For buyers who have been pushed farther from job centers and are dealing with long and costly commutes, this legislation could eventually mean more choices that are closer to where they need to be.
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